India eases foreign investment rules

India’s cabinet announced yesterday that it would ease restrictions on foreign investment in four key sectors. Yesterday, the government approved 100 per cent foreign direct investment in the coal mining and contract manufacturing sectors and allowed FDI of up to 26 per cent in digital media.

It also loosened sourcing requirements for single-brand retailers. India’s commerce and industry minister Piyush Goyal said the measures would “boost exports... and create massive job opportunities”.

Finance Minister Nirmala Sitharaman and other senior officials have hinted that more steps could soon be announced to tackle economic woes.

“The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth,” the government said in a statement.